The U.S. government under President Donald Trump is expanding its role in the oil industry through a historic deal with Venezuela. The Department of Defense's Strategic Capital Office (OSC), also known as the Pentagon, will acquire a 35% stake in the private oil company North American Blue Energy Partners (NABEP), which has been granted concessions for 17 oil fields over 100 years, representing proven crude reserves of approximately 65 billion barrels, or about 20% of the country's estimated total reserves of 303 billion barrels—more than four times ExxonMobil's reserves. Under the agreement, the U.S. State Department has the right to purchase 20% of production at cost and has first right of refusal for the remaining 80% of output. The U.S. government also has the right to veto the appointment of NABEP directors, with a majority of directors required to be U.S. citizens. The deal comes amid legal questions, political risks, and transparency concerns, as NABEP CEO Alejandro Betancourt has previously faced allegations of money laundering and corruption, though he has not been charged.
Pentagon's Strategic Capital Office will acquire a 35% stake in NABEP, a major equity/financing event for the company.
